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A BILL TO BE ENTITLED
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AN ACT
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relating to rates charged for residential property and personal |
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automobile insurance in certain rating territories. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 911.001(c), Insurance Code, is amended |
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to read as follows: |
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(c) Except to the extent of any conflict with this chapter, |
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the following provisions apply to a farm mutual insurance company: |
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(1) Subchapter A, Chapter 32; |
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(2) Subchapter D, Chapter 36; |
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(3) Sections 31.002(2), 32.021(c), 32.023, 32.041, |
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33.002, 38.001, 81.001-81.004, 201.005, 201.055, 401.051, 401.052, |
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401.054-401.062, 401.103-401.106, 401.151, 401.152, 401.155, |
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401.156, 421.001, 801.051-801.055, 801.057, 801.101, 801.102, |
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822.204, 841.004, 841.251, 841.252, [and] 862.101, 1806.001, |
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1806.101, 1806.103(b), and 1806.104-1806.107; |
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(4) Chapter 86; |
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(5) Subchapter A, Chapter 401; |
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(6) Subchapter B, Chapter 404; |
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(7) Chapter 422; |
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(8) Subchapter B, Chapter 424, other than Section |
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424.052, 424.072, or 424.073; |
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(9) Chapter 441; |
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(10) Chapter 462; |
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(11) Chapter 481; |
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(12) Chapter 541; |
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(13) [(5)] Chapter 802; |
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(14) [(6)] Subchapter A, Chapter 805; |
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(15) [(7)] Chapter 824; [and] |
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(16) [(8)] Sections 2 and [, 5,] 6, [and 17,] Article |
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1.10, and Articles 1.09-1, 1.12, and 1.13; and |
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(17) with respect to residential property insurance, |
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Section 2253.001 [, 1.15, 1.15A, 1.16, 1.17, 1.18, 1.19, 2.10,
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5.20, 21.28, 21.28--A, 21.28--C, 21.39, and 21.39--A]. |
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SECTION 2. (a) Section 2253.001, Insurance Code, is |
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amended to conform to Section 2, Chapter 291, Acts of the 79th |
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Legislature, Regular Session, 2005, and further amended to read as |
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follows: |
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Sec. 2253.001. RATING TERRITORIES. (a) Notwithstanding |
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any other provision of this code, an insurer, in writing |
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residential property or personal automobile insurance, may use |
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rating territories that subdivide a county only if: |
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(1) the county is subdivided; and |
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(2) the rate for any subdivision in the county is not |
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greater than 15 percent higher than the rate used in any other |
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subdivision in the county by that insurer. |
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(b) The [For residential property insurance or personal
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automobile insurance, the] commissioner by rule may allow a greater |
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rate difference than the rate difference specified by Subsection |
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(a) if the commissioner determines that the greater rate difference |
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is justified solely by weather-related factors and is supported |
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with sound actuarial data. |
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(b) Section 2, Chapter 291, Acts of the 79th Legislature, |
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Regular Session, 2005, which amended former Article 5.171, |
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Insurance Code, is repealed. |
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SECTION 3. The change in law made by this Act applies only |
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to a residential property or personal automobile insurance policy |
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delivered, issued for delivery, or renewed on or after January 1, |
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2008. A policy delivered, issued for delivery, or renewed before |
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that date is governed by the law in effect immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 4. This Act takes effect September 1, 2007. |